Act No. 3960 — An Act for the Benefit of Labor, Declaring Debts for Salaries and Wages Earned and Indemnities Due to the Laborer Preferential Claims, and Amending Section Seven Hundred and Thirty-Five of the Code of Civil Procedure Accordingly.

Act No. 3960 · Act · Approved December 2, 1932 · 2 sections

Data as of July 4, 2026 · Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗

Section 1

SECTION 1. Section seven hundred and thirty-five of Act Numbered One hundred and ninety, entitled the Code of Civil Procedure, is hereby amended to read as follows: "SEC. 735. Order of payment if estate insolvent.—If the assets which can be appropriated for the payment of debts are not sufficient for that purpose, the executor or administrator shall after paying the necessary expenses of administration, pay the debts against the estate in the following order: "1. The necessary funeral expenses; "2. The expenses of the last sickness; "3. What is owing to the laborer for salaries and wages earned and for indemnities due to him, for the last year; "4. Debts due to the United States; "5. Taxes and assessments due to the Government, or any branch or subdivision thereof; "6. Debts due to the province; "7. Debts due to other creditors."

Section 2

SEC. 2. This Act shall take effect on its approval. Approved, December 2, 1932.

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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